Outerwall Inc. Announces 2016 Q2 Results: Profits Rise Amid Declining Sales At Redbox Venders

by Outerwall Press Release
Posted On: 7/29/2016

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TAGS: Redbox, Coinstar, Outerwall Inc. , Outerwall second quarter 2016, Erik E. Prusch, ecoATM


Source: Outerwall | Released July 28, 2016

Reported $518 million in consolidated revenue; solid execution drives strong margins, profitability and cash flow

BELLEVUE, WA -- July 28 -- Outerwall Inc. today reported financial results for the second quarter, ended June 30, 2016.

"Outerwall achieved strong results in the second quarter, underscoring our ability to generate continued profitability and cash flow, and deliver shareholder value," said Erik E. Prusch, chief executive officer. "Our second quarter results reflect solid execution company-wide, with improved sequential results at Redbox and the highest second quarter revenue in Coinstar's 25-year history. We also made substantial progress at ecoATM and continue to expect the business to achieve segment operating profitability for 2016."

Prusch continued, "Earlier this week we announced that we completed our comprehensive process reviewing alternatives to maximize value for all shareholders and reached an agreement to be acquired by affiliates of Apollo Global Management. We are pleased with the agreement and the immediate and substantial cash premium it provides to our shareholders, and look forward to working with Apollo to continue serving our millions of loyal customers and unparalleled network of retail partners."

Outerwall's GAAP results for the second quarter of 2015 include the impact of a non-cash, non-tax deductible charge for goodwill impairment of $85.9 million related to its ecoATM business segment. The company's core results exclude the impact of the impairment charge as a non-core adjustment.

Click here for full release and segment results for Redbox, Coinstar and ecoATM.

Here's a summary of highlights from Ouberwall's second quarter:

» Delivered $115.9 million in core adjusted EBITDA from continuing operations, down $6.0 million from the second quarter of 2015, despite $27.3 million in lower revenue

» Produced $2.41 in core diluted EPS from continuing operations

» Generated $60.1 million in free cash flow

» Distributed $10.2 million in quarterly cash dividends

» Repurchased $2.6 million in face value of 2021 Notes and reduced the outstanding balance on its credit facility by $44.7 million

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